Herman Daly passed away on October 28. He was one of the founders of the “ecological economics” school of thought. The big contribution of Herman Daly to our knowledge is his explanation of a simple idea: the economy is part of the environment, not vice versa.
To most non-economists, the idea that the human economy is part of our larger world (atmosphere, sun, soil, water, minerals, plants, animals, and people) is common sense. Of course the economy is part of the environment, how could it be otherwise? But sometimes, as Herman Daly remarked, it’s the simplest things that are hardest to understand. If you understand that the economy is part of the environment, then congratulations: you know more about the basis of economics than most economists, including the ones to whom our political leaders look for advice. Continue reading “Herman Daly (1938 – 2022)”